WEBVTT 00:00:05.960 --> 00:00:09.140 Welcome to the Bitcoin Street Journal. Bitcoin 00:00:09.140 --> 00:00:12.380 Market Update, Episode 10 on Week 20, Friday, 00:00:12.619 --> 00:00:16.320 May 26, 2023. Stay ahead of the game and avoid 00:00:16.320 --> 00:00:18.219 government and central bank interference with 00:00:18.219 --> 00:00:20.699 your Bitcoin investment by tuning in daily for 00:00:20.699 --> 00:00:23.679 live market updates, technical analysis, and 00:00:23.679 --> 00:00:26.480 breaking news. Don't miss out on important information. 00:00:27.019 --> 00:00:29.739 Subscribe now to stay updated on the latest in 00:00:29.739 --> 00:00:32.539 the world of Bitcoin. In today's episode, we'll 00:00:32.539 --> 00:00:34.799 cover Gemini's expansion into Europe and their 00:00:34.799 --> 00:00:37.600 plan to stay in the US despite regulatory pressure, 00:00:38.200 --> 00:00:40.740 Bitcoin and Ethereum's performance amid an options 00:00:40.740 --> 00:00:43.659 expiry event and loss of trader sentiment, as 00:00:43.659 --> 00:00:46.539 well as DJ Steve Aoki falling victim to crypto 00:00:46.539 --> 00:00:58.990 theft in a phishing scam. the cryptocurrency 00:00:58.990 --> 00:01:01.450 exchange run by Tyler and Cameron Winklevoss, 00:01:02.090 --> 00:01:04.569 has chosen the Republic of Ireland as its European 00:01:04.569 --> 00:01:07.590 home. Amid increasing regulatory pressure in 00:01:07.590 --> 00:01:10.469 the United States, the Winklevoss twins see the 00:01:10.469 --> 00:01:12.609 Emerald Isle as an entry point into the rest 00:01:12.609 --> 00:01:15.109 of Europe. The decision followed a meeting between 00:01:15.109 --> 00:01:17.950 the crypto co -founders, the Irish Prime Minister 00:01:17.950 --> 00:01:20.790 Leo Varadkar, and the representatives of the 00:01:20.790 --> 00:01:23.069 Industrial Development Agency responsible for 00:01:23.069 --> 00:01:26.540 foreign investment into Ireland. Gemini CEO Tyler 00:01:26.540 --> 00:01:29.400 Winklevoss stated that markets and crypto assets, 00:01:29.680 --> 00:01:33.319 MyCA, is that common sense regulation. Gemini 00:01:33.319 --> 00:01:35.719 was the first crypto company to be registered 00:01:35.719 --> 00:01:38.680 as a virtual asset service provider by the Central 00:01:38.680 --> 00:01:42.799 Bank of Ireland in July 2022. And in an interview 00:01:42.799 --> 00:01:45.939 with the Irish Times, Gemini's president Cameron 00:01:45.939 --> 00:01:49.260 Winklevoss said that Ireland will be the exchange's 00:01:49.260 --> 00:01:52.319 entry point into the rest of Europe. once the 00:01:52.319 --> 00:01:55.340 MyCA regulation is fully implemented across the 00:01:55.340 --> 00:02:08.419 EU by 2025. Gemini, the cryptocurrency exchange 00:02:08.419 --> 00:02:11.080 co -founded by the Winklevoss twins, has been 00:02:11.080 --> 00:02:13.400 charged by the Securities and Exchange Commission, 00:02:13.639 --> 00:02:16.879 SEC, for selling unregistered securities related 00:02:16.879 --> 00:02:19.919 to their Earn program, which has since been terminated. 00:02:20.360 --> 00:02:22.919 The penalty prompted Gemini's co -founders to 00:02:22.919 --> 00:02:26.039 look for alternative jurisdictions. Cameron Winklevoss 00:02:26.039 --> 00:02:28.159 stated that there are so many headwinds right 00:02:28.159 --> 00:02:30.180 now in the US, it's hard to get anything done 00:02:30.180 --> 00:02:32.699 there. And so in order to keep building our business 00:02:32.699 --> 00:02:35.020 and invest in hiring, we have to look elsewhere. 00:02:35.819 --> 00:02:38.039 They visited London and met with officials at 00:02:38.039 --> 00:02:41.080 the Financial Conduct Authority, FCA, and the 00:02:41.080 --> 00:02:43.659 Bank of England. Despite considering the UK as 00:02:43.659 --> 00:02:46.099 a potential new base, they have no intention 00:02:46.099 --> 00:02:49.099 of leaving the US entirely. According to Cameron, 00:02:49.479 --> 00:02:52.319 We're not leaving the U .S. We're going to continue 00:02:52.319 --> 00:02:55.280 to fight the good fight there. But we also understand 00:02:55.280 --> 00:02:57.460 that you can vote with your feet, and that's 00:02:57.460 --> 00:02:59.800 our right. And we will do that when faced with 00:02:59.800 --> 00:03:12.009 a hostile environment. It's been a crazy day 00:03:12.009 --> 00:03:14.530 in the cryptocurrency world as Bitcoin and Ethereum 00:03:14.530 --> 00:03:17.110 faced a hefty options expiration event this morning. 00:03:17.610 --> 00:03:19.469 Many analysts were worried about what the event 00:03:19.469 --> 00:03:21.949 might bring, but it looks like both cryptos have 00:03:21.949 --> 00:03:25.449 held their ground. Earlier today, Bitcoin rose 00:03:25.449 --> 00:03:30.129 1 % while ETH jumped 1 .6%. Although BTC is now 00:03:30.129 --> 00:03:34.870 trading at $26 ,509, down 11 % over the past 00:03:34.870 --> 00:03:39.020 30 days, and ETH has dropped 4 .6%. They managed 00:03:39.020 --> 00:03:41.060 to stay afloat despite the uncertainty induced 00:03:41.060 --> 00:03:44.139 by the options expiration event. Speaking of 00:03:44.139 --> 00:03:46.800 the options expiration event, Bitcoin options 00:03:46.800 --> 00:03:49.020 on Deribit expired this morning with a notional 00:03:49.020 --> 00:03:53.259 value of $2 .26 billion and $1 .25 billion for 00:03:53.259 --> 00:03:55.620 Ethereum, which definitely raised some concerns 00:03:55.620 --> 00:03:58.539 in the market. The Bitcoin options market had 00:03:58.539 --> 00:04:02.000 a put to call ratio of 0 .44, which indicates 00:04:02.000 --> 00:04:05.530 that traders mostly held bullish positions. Similarly, 00:04:05.729 --> 00:04:09.189 for ETH, every put option had two call open options 00:04:09.189 --> 00:04:12.310 opened. It's likely these bullish positions are 00:04:12.310 --> 00:04:14.889 why the price reacted negatively before the expiry. 00:04:15.449 --> 00:04:17.990 Now, let's take a look at what option call contracts 00:04:17.990 --> 00:04:20.769 represent. They're financial derivatives that 00:04:20.769 --> 00:04:23.009 give the holder the right but not the obligation 00:04:23.009 --> 00:04:26.189 to buy a specific asset at a predetermined price. 00:04:26.750 --> 00:04:29.670 For instance, a may call option for a strike 00:04:29.670 --> 00:04:33.250 price of $27 ,000 would mean that for the buyer 00:04:33.250 --> 00:04:36.240 to turn a profit, the price must be higher than 00:04:36.240 --> 00:04:40.660 $27 ,000 at its expiration. Usually, the market 00:04:40.660 --> 00:04:43.399 has a tendency to fluctuate toward the maximum 00:04:43.399 --> 00:04:46.959 pain point close to option expiration. And today's 00:04:46.959 --> 00:04:50.300 maximum pain point for Bitcoin was $27 ,000 and 00:04:50.300 --> 00:04:54.319 $1 ,800 for Ethereum, roughly current prices. 00:04:55.040 --> 00:04:57.139 It's also worth noting that the low liquidity 00:04:57.139 --> 00:04:59.860 market conditions have exacerbated the impact 00:04:59.860 --> 00:05:03.500 of the options expiration event. Bitcoin's liquidity 00:05:03.500 --> 00:05:07.779 dried up in Q2 2023 due to events such as the 00:05:07.779 --> 00:05:10.879 end of Binance's zero -fee trading program, the 00:05:10.879 --> 00:05:13.939 banking crises, and macroeconomic issues like 00:05:13.939 --> 00:05:16.360 the ongoing debt ceiling debate in the United 00:05:16.360 --> 00:05:19.720 States. Co -founder of crypto research outlet 00:05:19.720 --> 00:05:23.180 Jarvis Labs, Ben Lilly, measured the decline 00:05:23.180 --> 00:05:26.259 in liquidity using the cumulative volume Delta, 00:05:26.819 --> 00:05:30.740 CVD, metric for spot, and futures markets. CVD 00:05:30.740 --> 00:05:32.660 measures the cumulative change in the volume 00:05:32.660 --> 00:05:35.779 of buy and sell orders as the price moves. Overall, 00:05:36.120 --> 00:05:38.379 things are looking stable for Bitcoin and Ethereum 00:05:38.379 --> 00:05:41.319 amidst the recent options expiration event. Although 00:05:41.319 --> 00:05:43.680 both cryptos have experienced some losses over 00:05:43.680 --> 00:05:45.959 the past weeks, they're still holding on and 00:05:45.959 --> 00:05:56.480 remaining resilient. Today, we're going to talk 00:05:56.480 --> 00:05:58.740 about the current state of Bitcoin trading and 00:05:58.740 --> 00:06:01.759 the market sentiment. As you may know, many Bitcoin 00:06:01.759 --> 00:06:04.300 traders and speculators usually buy the dip whenever 00:06:04.300 --> 00:06:07.680 the price drops. However, it seems like this 00:06:07.680 --> 00:06:10.699 sentiment is decreasing at the moment. On May 00:06:10.699 --> 00:06:13.740 26th, on -chain analytics provider Santiment 00:06:13.740 --> 00:06:16.480 noted that traders are now scared to buy bigger 00:06:16.480 --> 00:06:19.339 dips and mentions of buying the dip are currently 00:06:19.339 --> 00:06:22.620 dormant. This suggests a lack of market sentiment. 00:06:23.000 --> 00:06:26.120 And historically, this type of fear, uncertainty 00:06:26.120 --> 00:06:29.399 and doubt has been good to capitalize on. In 00:06:29.399 --> 00:06:32.240 addition to this, Bitcoin prices have gone down 00:06:32.240 --> 00:06:35.420 almost 15 % since mid -April. There is also a 00:06:35.420 --> 00:06:37.819 lack of volume at the moment, indicating that 00:06:37.819 --> 00:06:40.519 this dip isn't low enough yet to entice more 00:06:40.519 --> 00:06:43.240 buying pressure. Santiment reported that there 00:06:43.240 --> 00:06:45.480 has been an increase in selling at a loss among 00:06:45.480 --> 00:06:48.980 crypto holders. This means that using the MVRV, 00:06:49.129 --> 00:06:52.149 market value to realized value metric, the vast 00:06:52.149 --> 00:06:54.670 majority of crypto assets are flashing underbought 00:06:54.670 --> 00:06:57.509 signals across the sector. But what exactly is 00:06:57.509 --> 00:07:00.850 happening with Bitcoin? Well, Glassnode has noted 00:07:00.850 --> 00:07:03.250 that the Bitcoin price has fallen to the golden 00:07:03.250 --> 00:07:07.550 Fibonacci ratio of minus 61 .8%, which is at 00:07:07.550 --> 00:07:11.410 $26 ,200. This is where prices had fallen to 00:07:11.410 --> 00:07:15.240 a few hours ago. Since then, BTC has nudged up 00:07:15.240 --> 00:07:18.720 slightly to just below $26 ,500 at the time of 00:07:18.720 --> 00:07:21.480 writing, but remains bearish in the short term. 00:07:22.079 --> 00:07:24.560 Crypto markets fell to a 10 -week low on May 00:07:24.560 --> 00:07:27.579 25th with total capitalization falling to $1 00:07:27.579 --> 00:07:31.560 .14 trillion. They have only recovered marginally 00:07:31.560 --> 00:07:33.759 during the Friday morning Asian trading session, 00:07:34.139 --> 00:07:36.500 suggesting that more consolidation could be ahead 00:07:36.500 --> 00:07:40.259 over the weekend. BTC prices have added half 00:07:40.259 --> 00:07:43.420 a percent on the day, but remain sideways, hovering 00:07:43.420 --> 00:07:46.579 just above long -term support levels. A breakdown 00:07:46.579 --> 00:07:48.860 from here would find further support at around 00:07:48.860 --> 00:07:54.740 $25 ,000. Ethereum prices fell to $1 ,770 yesterday, 00:07:55.199 --> 00:07:58.579 but have since recovered to trade at $1 ,807 00:07:58.579 --> 00:08:02.120 at the time of writing. The only altcoins posting 00:08:02.120 --> 00:08:06.620 a measurable gain are XRP, Matic, and LTC. each 00:08:06.620 --> 00:08:16.379 having gained 3 % on the day. Have you heard 00:08:16.379 --> 00:08:18.379 about the recent Twitter hack that led to the 00:08:18.379 --> 00:08:22.040 loss of at least $170 ,000 worth of cryptocurrency 00:08:22.040 --> 00:08:25.920 assets? Well, it happened to American music producer 00:08:25.920 --> 00:08:29.819 and DJ Steve Aoki. Hackers gained access to his 00:08:29.819 --> 00:08:31.939 Twitter account and used it to conduct a phishing 00:08:31.939 --> 00:08:35.039 scam. The attackers tricked users into believing 00:08:35.039 --> 00:08:38.720 that Aoki had joined the dollar PSIOP token train, 00:08:39.440 --> 00:08:42.419 thus offering them free tokens. They then provided 00:08:42.419 --> 00:08:45.980 a link for the users to claim the tokens. Unfortunately, 00:08:46.419 --> 00:08:48.419 some individuals fell victim to the scam and 00:08:48.419 --> 00:08:50.779 ended up losing a hefty sum of approximately 00:08:50.779 --> 00:08:55.590 $170 ,000 in Ether, ETH, to the scammers. What's 00:08:55.590 --> 00:08:57.850 even more concerning is that a well -known crypto 00:08:57.850 --> 00:09:00.690 influencer retweeted the phishing scam post for 00:09:00.690 --> 00:09:03.870 clout or internet fame. This further enabled 00:09:03.870 --> 00:09:06.929 the scammers to reach even more victims. Phishing 00:09:06.929 --> 00:09:09.269 scams like this are increasingly common in the 00:09:09.269 --> 00:09:12.059 cryptocurrency world. They involve social engineering 00:09:12.059 --> 00:09:14.740 tactics that trick users into revealing their 00:09:14.740 --> 00:09:17.720 login credentials, such as usernames and passwords. 00:09:18.299 --> 00:09:20.360 Once the attackers get ahold of this information, 00:09:20.840 --> 00:09:23.320 they can easily access the victim's account and 00:09:23.320 --> 00:09:26.440 potentially steal more sensitive data. This isn't 00:09:26.440 --> 00:09:28.480 the first time that crypto investors have been 00:09:28.480 --> 00:09:31.200 targeted with phishing scams. In fact, over the 00:09:31.200 --> 00:09:33.980 past few months, there have been several sophisticated 00:09:33.980 --> 00:09:36.200 frauds trying to dupe investors out of their 00:09:36.200 --> 00:09:39.059 digital assets. The sandbox, for instance, had 00:09:39.059 --> 00:09:41.700 an unauthorized third -party gain access to one 00:09:41.700 --> 00:09:44.379 of its employees' computers, which was then used 00:09:44.379 --> 00:09:46.720 to send a false email claiming to be from the 00:09:46.720 --> 00:09:49.759 company. With the increasing number and scale 00:09:49.759 --> 00:09:52.639 of cryptocurrency -related phishing scams, it's 00:09:52.639 --> 00:09:55.059 important for investors to be vigilant and prioritize 00:09:55.059 --> 00:10:07.039 security in managing their digital assets. Today, 00:10:07.159 --> 00:10:09.919 we discussed Gemini's expansion to Ireland, their 00:10:09.919 --> 00:10:12.600 plans to stay in the US despite SEC targeting, 00:10:13.139 --> 00:10:15.559 Bitcoin and Ethereum's performance during a $3 00:10:15.559 --> 00:10:19.200 .5 billion options expiry event, the weakening 00:10:19.200 --> 00:10:22.100 sentiment among Bitcoin traders, and DJ Steve 00:10:22.100 --> 00:10:26.019 Aoki's Twitter account getting hacked for $170k 00:10:26.019 --> 00:10:28.360 worth of crypto. Thanks for listening to today's 00:10:28.360 --> 00:10:30.820 episode. I'll see you guys at the next one. And 00:10:30.820 --> 00:10:31.779 don't forget to subscribe.